In 2019, Lee Electronics, a franchise of electronics stores located in small towns throughout the United States, sold 450 32-inch televisions for $575 each. The televisions carry an attached 3-year warranty for repairs. Lee Electronics estimates that repair costs will average 2% of the total selling price.
Required:
1. How much is recorded in the Warranty Liability account as a result of selling the televisions during 2019, assuming no warranty service has yet been performed?
2. Provide the necessary adjusting entry at December 31, 2019.